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Looks like Google paid low taxes in Sweden - Skr944 000 and there is outcry on big companies here

Sunday, 20 January 2013
The Swedish Finance Minister, Anders Borg is considering tightening roles on the Swedish tax system that has traditionally favoured big companies such as Facebook and Google, which have in most cases "avoided paying their fair share in taxes".

Internet search engine giant Google has been accused by the Swedish authorities of manipulating the tax system of the country such that it ends up paying only Skr944,000 in taxes despite huge earnings from Swedish advertisers determined to be in the region of billions.

This comes just after a report last week talked of another internet giant, Facebook earning hundreds of millions of kronor in Sweden but paying only Skr 770,000 in taxes. Now, it turns out that Google, which according to industry analysts told Swedish television that the company could make revenues of up to Skr3 billion from the Swedish market last year, paid Skr944,000 in income tax.

"I think company as well as us should sit down and look at their numbers, if they are making reasonable profit. If they have many employees and substantial income, then they should probably pay some tax...avoiding, ...I think that's bad for business," said Swedish finance Minister, Anders Borg to Swedish television.

Google told Swedish television that they were not prepared for interviews and that the company does not comment on its income, and that laws and regulations are always followed. Google deals with its earning from its advertising sales via its office in Ireland, where corporation tax is lower. That is why the reported taxes in Sweden is relatively modest, according to Swedish television.

But Swedish Finance Minister Borg is critical of the arrangement and told Swedish television that "We have had a lot of dialogue where, among others, Sweden and Germany and some other countries have been active in creating tougher rules to perhaps tighten up conditions. I also know that the U.S.A had such thoughts. It would be great if we could make progress with it."

Swedes Google up to 50 million times every day, and it is through user searches that ads can be controlled and money earned. A yet unpublished report shows that Swedish companies are now buying Internet advertising for over Skr 7 billion per year.

Google has presented itself as the market leader followed by others such as Facebook, Yahoo, and Microsoft Bing among others. The worry now is how the new rules could be arranged and enforced given that companies like Facebook and Google have very limited physical presence in Sweden. Could enforcement cuts internet search in Sweden and thus limit our operations with the rest of the world?

Not long ago this network sort campaigned for smaller businesses in Sweden which are always disadvantaged in various micro economic policies. However, these same small businesses are keeping Sweden going while Sweden persistently remain obsessed with big companies - which are few and are in real terms contributing less. Now the foreign ones such as Facebook and Google are now on the spotlight on taxes, following laws, which they did not design and being blamed for loopholes they did not create. Not long ago, the radar was pointed at IKEA, home grown but which taxes pushed out. But IKEA ignored government and campaigners and continue to practise intense tax planning.
Byscancomark.com Team

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